Accounting Policies of Satra Properties (India) Ltd. Company

Mar 31, 2016

1. COMPANY OVERVIEW

The Company was incorporated on 30 May 1983 as Express Leasing Limited. The name of the Company was changed to Satra Properties (India) Limited (âthe Companyâ) on 8 December 2005. The Company is engaged in the business of real estate development and trading in properties, transferable development rights and construction contracts.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The accounting policies set out below have been applied consistently to the periods presented in these financial statements.

2.1 Basis of preparation of financial statements

The financial statements are prepared in accordance with Indian Generally Accepted Accounting Principles (GAAP) under the historical cost convention on accrual basis. GAAP comprises mandatory accounting standards as prescribed u/s 133 of Companies Act, 2013 (the Act) read with rule 7 of the Companies (Accounts) Rules, 2014, the provision of the Act (to the extent notified) and guidelines issued by the Securities and Exchange Board of India (SEBI). Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policies hitherto in use.

2.2 Current / Non-current classification

The assets and liabilities are classified into current or non-current.

An asset is classified as current when it satisfies any of the following criteria:

(a) it is expected to be realized in, or is intended for sale or consumption in, the Companyâs normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realized within twelve months after the balance sheet date; or

(d) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the balance sheet date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in, the entityâs normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the balance sheet date; or

(d) the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities are classified as non-current.

Operating cycle

Based on the nature of services and the time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 3 to 4 years for the purpose of current and non-current classification of assets and liabilities.

2.3 Use of estimates

The preparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires management to make judgments, estimates and assumptions that affect the application of accounting policies and reported amounts of assets, liabilities, income and expenses and the disclosure of contingent liabilities on the date of the financial statements. Actual results could differ from those estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Any revision to accounting estimates is recognized prospectively in current and future periods.

Tangible fixed assets are carried at cost of acquisition or construction less accumulated depreciation and/or accumulated impairment loss, if any. The cost of an item of tangible fixed asset comprises its purchase price, including import duties and other non-refundable taxes or levies and any directly attributable cost of bringing the asset to its working condition for its intended use; any trade discounts and rebates are deducted in arriving at the purchase price.

Subsequent expenditures related to an item of tangible fixed asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Depreciation is provided on the written down value method. The rates of depreciation are calculated as prescribed in Schedule II of the Companies Act, 2013. If the managementâs estimate of the useful life of a fixed asset at the time of acquisition of the asset or of the remaining useful life on a subsequent review is shorter than that envisaged in the aforesaid schedule, depreciation is provided at a higher rate based on the managementâs estimate of the useful life/remaining useful life. Depreciation is provided on a pro-rata basis i.e. from the date on which asset is ready for use.

Plant and equipment and furniture and fixtures, costing individually Rs. 5,000 or less, are depreciated fully in the year of purchase. A fixed asset is eliminated from the financial statements on disposal or when no further benefit is expected from its use and disposal.

2.5 Impairment of assets

The Company assesses at each balance sheet date whether there is any indication that an asset may be impaired. If any such indication exists, the Company estimates the recoverable amount of the asset. The recoverable amount is the greater of the net selling price and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value based on an appropriate discount factor. If such recoverable amount of the asset or the recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount, the carrying amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciable historical cost.

2.6 Investments

Investments are classified into long-term investments and current investments. Investments that are intended to be held for one year or more are classified as long-term investments and investments that are intended to be held for less than one year are classified as current investments.

Long-term investments are valued at cost of acquisition less permanent diminution in value.

Current investments are valued at lower of cost or fair value determined on individual investment basis.

2.7 Inventories

Direct expenses like cost of land, site labour cost, material used for project construction, project management consultancy, costs for moving the plant and machinery to the site and general expenses incurred specifically for the respective project like insurance, design and technical assistance, borrowing costs and construction overheads are taken as the cost of construction work-in-progress. Material at site comprises of building material, components and stores and spares.

Inventories are valued as lower of cost and net realizable value. Cost is determined on the first in first out (âFIFOâ) basis. Net realizable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and estimated costs necessary to make the sale.

2.8 Borrowing costs

Borrowing costs that are attributable to the acquisition, construction or production of qualifying assets are treated as direct cost and are considered as part of cost of such assets. A qualifying asset is an asset that necessarily requires a substantial period of time to get ready for its intended use or sale. Capitalization of borrowing costs is suspended in the period during which the active development is delayed beyond reasonable time due to circumstances other than temporary interruption. All other borrowing costs are charged to the statement of profit and loss as incurred.

2.9 Employee benefits

(a) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee benefits. Benefits such as salaries and wages, leave salary etc. and the expected cost of ex-gratia are recognized in the period in which the employee renders the related service.

(b) Post-employment benefits

Defined contribution plans:

The Company makes specified monthly contributions towards employee provident fund. The Companyâs contribution paid/ payable under the schemes is recognized as an expense in the statement of profit and loss during the period in which the employee renders the related service.

Defined benefit plan:

The Companyâs gratuity benefit scheme is a defined benefit plan. The Companyâs net obligation in respect of the gratuity benefit scheme is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and the fair value of any plan assets is deducted.

The present value of the obligation under such defined benefit plan is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The obligation is measured at the present value of the estimated future cash flows. The discount rates used for determining the present value of the obligation under defined benefit plan, are based on the market yields on Government securities as at the balance sheet date.

When the calculation results in a benefit to the Company, the recognized asset is limited to the net total of any unrecognized actuarial losses and past service costs and the present value of any future refunds from the plan or reductions in future contributions to the plan.

Actuarial gains and losses are recognized immediately in the statement of profit and loss.

2.10 Revenue recognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.

Income from real estate sales is recognized on the transfer of all significant risks and rewards of ownership to the buyers and it is not unreasonable to expect ultimate collection and no significant uncertainty exists regarding the amount of consideration. However, if at the time of transfer substantial acts are yet to be performed under the contract, revenue is recognized on proportionate basis as the acts are performed, i.e., on the percentage of completion basis.

Revenue from constructions contracts, where the outcome can be estimated reliably, is recognised under the percentage of completion method by reference to the stage of completion of the contract activity. The stage of completion is measured by calculating the proportion that costs incurred to date bear to the estimated total costs of a contract.

Unbilled work-in-progress is valued at lower of cost and net realizable value upto the stage of completion. Cost includes direct material, labour cost and appropriate overheads.

Determination of revenues under the percentage of completion method necessarily involves making estimates by the Company, some of which are of a technical nature, concerning, where relevant, the percentages of completion, costs to completion, the expected revenues from the project/activity and the foreseeable losses to completion. The estimates of cost are periodically reviewed by the management and the effect of changes in estimates is recognized in the period such changes are recognized. When the total project cost is estimated to exceed total revenues from the project, the loss is recognized immediately.

Revenue from trading activity, in property as well as Transferable Development Rights (TDR), is recognized when significant risk and rewards of the property/TDR are transferred to the buyer, as demonstrated by transfer of physical possession and transfer of the title in the property/TDR.

In view of the nature of service rendered, revenue is recognized provided the consideration is reliably determinable and no significant uncertainty exists regarding the amount of consideration.

Interest income is recognized on time proportion basis.

Dividend income is recognized when the right to receive dividend is established.

2.11 Taxation

Income-tax expense comprises current income tax and deferred tax charge or credit.

Current tax provision is made annually based on the tax liability computed in accordance with the provisions of the Income-tax Act, 1961.

The deferred tax charge or credit (reflecting the tax effects of timing differences between accounting income and taxable income for the period) and the corresponding deferred tax liabilities or assets are recognized using the tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax assets are recognized only to the extent there is reasonable certainty that the assets can be realized in future; however; where there is unabsorbed depreciation or carried forward loss under taxation laws, deferred tax assets are recognized only if there is a virtual certainty of realization of such assets. Deferred tax assets are reviewed at each balance sheet date and written down or written up to reflect the amount that is reasonably/virtually certain (as the case may be) to be realized.

2.12 Foreign currency transactions

Foreign currency transactions are recorded at the spot rates on the date of the respective transactions. Exchange differences arising on foreign exchange transactions settled during the year are recognized in the statement of profit and loss of the year.

Monetary assets and liabilities denominated in foreign currencies as at the balance sheet date are translated at the closing exchange rates on that date; the resultant exchange differences are recognized in the statement of profit and loss. Non-monetary assets such as investments in equity shares, etc. are carried forward in the balance sheet at costs.

2.13 Operating lease

Lease rentals in respect of assets acquired on operating leases are recognized in the statement of profit and loss on a straight line basis over the lease term.

2.14 Earnings per share (EPS)

The Basic EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity shares outstanding during the reporting year. Diluted EPS is computed by dividing the net profit attributable to the equity shareholders for the year by the weighted average number of equity and dilutive equity equivalent shares outstanding during the year, except where the results would be anti-dilutive.

2.15 Provisions and contingent liabilities

The Company creates a provision where there is present obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible or a present obligation that may, but probably will not require an outflow of resources. When there is a possible obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognized in the financial statements.

Mar 31, 2015

The accounting policies set out below have been applied consistently to
the periods presented in these financial statements.

2.1 Basis of preparation of financial statements

The financial statements are prepared in accordance with Indian
Generally Accepted Accounting Principles (GAAP) under the historical
cost convention on accrual basis. GAAP comprises mandatory accounting
standards as precribed u/s 133 of Companies Act, 2013 (the Act) read
with rule 7 of the Companies (Accounts) Rules, 2014, the provision of
the Act (to the extent notified) and guidelines issued by the
Securities and Exchange Board of India (SEBI). Accounting policies have
been consistently applied except where a newly issued accounting
standard is initially adopted or a revision to an existing accounting
standard requires a change in the accounting policies hitherto in use.

2.2 Current / Non-current classification

The assets and liabilities are classified into current or non-current.

An asset is classified as current when it satisfies any of the
following criteria:

(a) it is expected to be realised in, or is intended for sale or
consumption in, the Company's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realised within twelve months after the
balance sheet date; or

(d) it is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months
after the balance sheet date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the
following criteria:

(a) it is expected to be settled in, the entity's normal operating
cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the balance
sheet date; or

(d) the Company does not have an unconditional right to defer
settlement of the liability for at least twelve months after the
reporting date. Terms of a liability that could at the option of the
counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.

All other liabilities are classified as non-current.

Operating cycle

Based on the nature of services and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 3 to 4
years for the purpose of current and non-current classification of
assets and liabilities.

2.3 Use of estimates

The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
judgments, estimates and assumptions that affect the application of
accounting policies and reported amounts of assets, liabilities, income
and expenses and the disclosure of contingent liabilities on the date
of the financial statements. Actual results could differ from those
estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Any revision to accounting estimates is recognised
prospectively in current and future periods.

Tangible fixed assets are carried at cost of acquisition or
construction less accumulated depreciation and/or accumulated
impairment loss, if any. The cost of an item of tangible fixed asset
comprises its purchase price, including import duties and other
non-refundable taxes or levies and any directly attributable cost of
bringing the asset to its working condition for its intended use; any
trade discounts and rebates are deducted in arriving at the purchase
price.

Subsequent expenditures related to an item of tangible fixed asset are
added to its book value only if they increase the future benefits from
the existing asset beyond its previously assessed standard of
performance.

Depreciation is provided on the written down value method. The rates of
depreciation are calculated as prescribed in Schedule II of the
Companies Act, 2013. If the management's estimate of the useful life of
a fixed asset at the time of acquisition of the asset or of the
remaining useful life on a subsequent review is shorter than that
envisaged in the aforesaid schedule, depreciation is provided at a
higher rate based on the management's estimate of the useful
life/remaining useful life. Depreciation is provided on a pro-rata
basis i.e. from the date on which asset is ready for use.

Plant and equipment and furniture and fixtures, costing individually
Rs. 5,000 or less, are depreciated fully in the year of purchase. A
fixed asset is eliminated from the financial statements on disposal or
when no further benefit is expected from its use and disposal.

2.5 Impairment of assets

The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. The
recoverable amount is the greater of the net selling price and value in
use. In assessing value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor. If such recoverable amount of the asset or the recoverable
amount of the cash generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and
is recognized in the statement of profit and loss. If at the balance
sheet date there is an indication that a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount subject to a maximum of
depreciable historical cost.

2.6 Investments

Investments are classified into long-term investments and current
investments. Investments that are intended to be held for one year or
more are classified as long-term investments and investments that are
intended to be held for less than one year are classified as current
investments.

Long term investments are valued at cost of acquisition less permanent
diminution in value.

Current investments are valued at lower of cost or fair value
determined on individual investment basis.

2.7 Inventories

Direct expenses like cost of land, site labour cost, material used for
project construction, project management consultancy, costs for moving
the plant and machinery to the site and general expenses incurred
specifically for the respective project like insurance, design and
technical assistance, borrowing costs and construction overheads are
taken as the cost of construction work-in-progress. Material at site
comprises of building material, components and stores and spares.

Inventories are valued as lower of cost and net realizable value. Cost
is determined on the first in first out ('FIFO') basis. Net realizable
value is the estimated selling price in the ordinary course of
business, less estimated costs of completion and estimated costs
necessary to make the sale.

2.8 Borrowing costs

Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are treated as direct cost and are
considered as part of cost of such assets. A qualifying asset is an
asset that necessarily requires a substantial period of time to get
ready for its intended use or sale. Capitalisation of borrowing costs
is suspended in the period during which the active development is
delayed beyond reasonable time due to circumstances other than
temporary interruption. All other borrowing costs are charged to the
statement of profit and loss as incurred.

2.9 Employee benefits

(a) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering
the service are classified as short-term employee benefits. Benefits
such as salaries and wages, leave salary etc. and the expected cost of
ex-gratia are recognized in the period in which the employee renders
the related service.

/payable under the schemes is recognized as an expense in the statement
of profit and loss during the period in which the employee renders the
related service.

Defined benefitplan:

The Company's gratuity benefit scheme is a defined benefit plan. The
Company's net obligation in respect of the gratuity benefit scheme is
calculated by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior
periods; that benefit is discounted to determine its present value, and
the fair value of any plan assets is deducted.

The present value of the obligation under such defined benefit plan is
determined based on actuarial valuation using the Projected Unit Credit
Method, which recognizes each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.

The obligation is measured at the present value of the estimated future
cash flows. The discount rates used for determining the present value
of the obligation under defined benefit plan, are based on the market
yields on Government securities as at the balance sheet date.

When the calculation results in a benefit to the Company, the
recognized asset is limited to the net total of any unrecognized
actuarial losses and past service costs and the present value of any
future refunds from the plan or reductions in future contributions to
the plan.

Actuarial gains and losses are recognized immediately in the statement
of profit and loss.

2.10 Revenue recognition

Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.

Income from real estate sales is recognized on the transfer of all
significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant
uncertainty exists regarding the amount of consideration. However, if
at the time of transfer substantial acts are yet to be performed under
the contract, revenue is recognized on proportionate basis as the acts
are performed, i.e., on the percentage of completion basis.

Revenue from constructions contracts, where the outcome can be
estimated reliably, is recognised under the percentage of completion
method by reference to the stage of completion of the contract
activity. The stage of completion is measured by calculating the
proportion that costs incurred to date bear to the estimated total
costs of a contract.

Unbilled work-in-progress is valued at lower of cost and net realizable
value upto the stage of completion. Cost includes direct material,
labour cost and appropriate overheads.

Determination of revenues under the percentage of completion method
necessarily involves making estimates by the Company, some of which are
of a technical nature, concerning, where relevant, the percentages of
completion, costs to completion, the expected revenues from the
project/activity and the foreseeable losses to completion. The
estimates of cost are periodically reviewed by the management and the
effect of changes in estimates is recognised in the period such changes
are recognised. When the total project cost is estimated to exceed
total revenues from the project, the loss is recognised immediately.

Revenue from trading activity, in property as well as Transferable
Development Rights (TDR), is recognized when significant risk and
rewards of the property/TDR are transferred to the buyer, as
demonstrated by transfer of physical possession and transfer of the
title in the property/TDR.

In view of the nature of service rendered, revenue is recognized
provided the consideration is reliably determinable and no significant
uncertainty exists regarding the amount of consideration.

Interest income is recognized on time proportion basis.

Dividend income is recognized when the right to receive dividend is
established.

2.11 Taxation

Income-tax expense comprises current income tax and deferred tax charge
or credit.

Current tax provision is made annually based on the tax liability
computed in accordance with the provisions of the Income-tax Act, 1961.
The deferred tax charge or credit (reflecting the tax effects of timing
differences between accounting income and taxable income for the
period) and the corresponding deferred tax liabilities or assets are
recognized using the tax rates that have been enacted or

2.11 Taxation (Continued)

substantively enacted by the balance sheet date. Deferred tax assets
are recognized only to the extent there is reasonable certainty that
the assets can be realized in future; however; where there is
unabsorbed depreciation or carried forward loss under taxation laws,
deferred tax assets are recognized only if there is a virtual certainty
of realization of such assets. Deferred tax assets are reviewed at each
balance sheet date and written down or written up to reflect the amount
that is reasonably/virtually certain (as the case may be) to be
realized.

2.12 Foreign currency transactions

Foreign currency transactions are recorded at the spot rates on the
date of the respective transactions. Exchange differences arising on
foreign exchange transactions settled during the year are recognized in
the statement of profit and loss of the year.

Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date are translated at the closing exchange rates on
that date; the resultant exchange differences are recognized in the
statement of profit and loss. Non-monetary assets such as investments
in equity shares, etc. are carried forward in the balance sheet at
costs.

2.13 Operating lease

Lease rentals in respect of assets acquired on operating leases are
recognised in the statement of profit and loss on a straight line basis
over the lease term.

2.14 Earnings per share (EPS)

The Basic EPS is computed by dividing the net profit attributable to
the equity shareholders for the year by the weighted average number of
equity shares outstanding during the reporting year. Diluted EPS is
computed by dividing the net profit attributable to the equity
shareholders for the year by the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year, except
where the results would be anti-dilutive.

2.15 Provisions and contingent liabilities

The Company creates a provision where there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
or a present obligation that may, but probably will not require an
outflow of resources. When there is a possible obligation in respect of
which the likelihood of outflow of resources is remote, no provision or
disclosure is made. Contingent assets are not recognised in the
financial statements.

Mar 31, 2014

The accounting policies set out below have been applied consistently to
the periods presented in these financial statements.

1 Basis of preparation of financial statements

These financial statements have been prepared and presented on the
accrual basis of accounting and comply with the Accounting Standards
prescribed in the Companies (Accounting Standards) Rules, 2006 issued
by the Central Government, the relevant provisions of the Companies
Act, 1956 which as per a clarification issued by the Ministry of
Corporate Affairs continue to apply under Section 133 of the Companies
Act, 2013 (which has super ceded Section 211(3C) of the Companies Act,
1956 w.e.f. 12 September 2013) and other accounting principles
generally accepted in India, to the extent applicable.

2 Current/Non-current classification

The assets and liabilities are classified into current or non-current.

An asset is classified as current when it satisfies any of the
following criteria:

(a) it is expected to be realised in, or is intended for sale or
consumption in, the Company''s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realised within twelve months after the
balance sheet date; or

(d) it is cash or cash equivalent unless it is restricted from being
exchanged or used to settle a liability for at least twelve months
after the balance sheet date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the
following criteria:

(a) it is expected to be settled in, the entity''s normal operating
cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the balance
sheet date; or

(d) the Company does not have an unconditional right to defer
settlement of the liability for at least twelve months after the
reporting date. Terms of a liability that could at the option of the
counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.

All other liabilities are classified as non-current.

Operating cycle

Based on the nature of services and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 3 to 4
years for the purpose of current and non-current classification of
assets and liabilities.3 Use of estimates

The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
judgments, estimates and assumptions that affect the application of
accounting policies and reported amounts of assets, liabilities, income
and expenses and the disclosure of contingent liabilities on the date
of the financial statements. Actual results could differ from those
estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Any revision to accounting estimates is recognised
prospectively in current and future periods.

Tangible fixed assets are carried at cost of acquisition or
construction less accumulated depreciation and/or accumulated
impairment loss, if any. The cost of an item of tangible fixed asset
comprises its purchase price, including import duties and other
non-refundable taxes or levies and any directly attributable cost of
bringing the asset to its working condition for its intended use; any
trade discounts and rebates are deducted in arriving at the purchase
price.

Subsequent expenditures related to an item of tangible fixed asset are
added to its book value only if they increase the future benefits from
the existing asset beyond its previously assessed standard of
performance.

Depreciation is provided on the written down value method. The rates of
depreciation prescribed in Schedule XIV to the Companies Act, 1956 are
considered as the minimum rates. If the management''s estimate of the
useful life of a fixed asset at the time of acquisition of the asset or
of the remaining useful life on a subsequent review is shorter than
that envisaged in the aforesaid schedule, depreciation is provided at a
higher rate based on the management''s estimate of the useful
life/remaining useful life. Depreciation is provided on a pro-rata
basis i.e. from the date on which asset is ready for use.

Plant and equipment and furniture and fixtures, costing individually
Rs. 5,000 or less, are depreciated fully in the year of purchase.

A fixed asset is eliminated from the financial statements on disposal
or when no further benefit is expected from its use and disposal.

5 Impairment of assets

The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. The
recoverable amount is the greater of the net selling price and value in
use. In assessing value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor. If such recoverable amount of the asset or the recoverable
amount of the cash generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and
is recognized in the statement of profit and loss. If at the balance
sheet date there is an indication that a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount subject to a maximum of
depreciable historical cost.

6 Investments

Investments that are readily realisable and intended to be held for not
more than a year from the date of acquisition are classified as current
investments. All other investments are classified as long-term
investments. However, that part of long term investments which is
expected to be realized within 12 months after the reporting date is
also presented under ''current assets'' as "current portion of long term
investments" in consonance with the currentÂnon-current
classification scheme of revised Schedule VI.

Long-term investments (including current portion thereof) are carried
at cost less any other-than-temporary diminution in value, determined
separately for each individual investment.

Any reductions in the carrying amount and any reversals of such
reductions are charged or credited to the statement of profit and loss.

Direct expenses like cost of land, site labour cost, material used for
project construction, project management consultancy, borrowing cost
and costs for moving the plant and machinery to the site and general
expenses incurred specifically for the respective project like
insurance, design and technical assistance, and construction overheads
are taken as the cost of the project.

Investment property under construction

Profit or loss on sale of investments is determined on the basis of
weighted average carrying amount of investments disposed off. Property
that is being constructed for future use as investment property is
accounted for as Investment property under construction until
construction or development is complete.

Investment property under construction represents the cost incurred in
respect of areas under construction of the real estate development
projects less impairment losses, if any.

7 Inventories

Direct expenses like cost of land, site labour cost, material used for
project construction, project management consultancy, costs for moving
the plant and machinery to the site and general expenses incurred
specifically for the respective project like insurance, design and
technical assistance, borrowing costs and construction overheads are
taken as the cost of construction work-in-progress.

Material at site comprises of building material, components and stores
and spares.

Inventories are valued as lower of cost and net realizable value. Cost
is determined on the first in first out (''FIFO'') basis. Net realizable
value is the estimated selling price in the ordinary course of
business, less estimated costs of completion and estimated costs
necessary to make the sale.

8 Borrowing costs

Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are treated as direct cost and are
considered as part of cost of such assets. A qualifying asset is an
asset that necessarily requires a substantial period of time to get
ready for its intended use or sale. Capitalisation of borrowing costs
is suspended in the period during which the active development is
delayed beyond reasonable time due to circumstances other than
temporary interruption. All other borrowing costs are charged to the
statement of profit and loss as incurred.

9 Employee benefits

(a) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering
the service are classified as short-term employee benefits. Benefits
such as salaries and wages, leave salary etc. and the expected cost of
ex-gratia are recognized in the period in which the employee renders
the related service.

(b) Post employment benefits Defined contribution plans:

The Company makes specified monthly contributions towards employee
provident fund. The Company''s contribution paid/payable under the
schemes is recognized as an expense in the statement of profit and loss
during the period in which the employee renders the related service.

Defined benefit plan:

The Company''s gratuity benefit scheme is a defined benefit plan. The
Company''s net obligation in respect of the gratuity benefit scheme is
calculated by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior
periods; that benefit is discounted to determine its present value, and
the fair value of any plan assets is deducted.

The present value of the obligation under such defined benefit plan is
determined based on actuarial valuation using the Projected Unit Credit
Method, which recognizes each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.

The obligation is measured at the present value of the estimated future
cash flows. The discount rates used for determining the present value
of the obligation under defined benefit plan, are based on the market
yields on Government securities as at the balance sheet date.

When the calculation results in a benefit to the Company, the
recognized asset is limited to the net total of any unrecognized
actuarial losses and past service costs and the present value of any
future refunds from the plan or reductions in future contributions to
the plan.

Actuarial gains and losses are recognized immediately in the statement
of profit and loss.

10 Revenue recognition

Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.

Income from real estate sales is recognized on the transfer of all
significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant
uncertainty exists regarding the amount of consideration. However, if
at the time of transfer substantial acts are yet to be performed under
the contract, revenue is recognized on proportionate basis as the acts
are performed, i.e., on the percentage of completion basis.

Revenue from constructions contracts, where the outcome can be
estimated reliably, is recognised under the percentage of completion
method by reference to the stage of completion of the contract
activity. The stage of completion is measured by calculating the
proportion that costs incurred to date bear to the estimated total
costs of a contract.

Determination of revenues under the percentage of completion method
necessarily involves making estimates by the Company, some of which are
of a technical nature, concerning, where relevant, the percentages of
completion, costs to completion, the expected revenues from the
project/activity and the foreseeable losses to completion. The
estimates of cost are periodically reviewed by the management and the
effect of changes in estimates is recognised in the period such changes
are recognized. When the total project cost is estimated to exceed
total revenues from the project, the loss is recognised immediately.

Revenue from trading activity, in property as well as Transferable
Development Rights (TDR), is recognized when significant risk and
rewards of the property/TDR are transferred to the buyer, as
demonstrated by transfer of physical possession and transfer of the
title in the property/TDR.

In view of the nature of service rendered, revenue is recognized
provided the consideration is reliably determinable and no significant
uncertainty exists regarding the amount of consideration.

Interest income is recognized on time proportion basis.

Dividend income is recognized when the right to receive dividend is
established.

11 Taxation

Income-tax expense comprises current income tax and deferred tax charge
or credit.

Current tax provision is made annually based on the tax liability
computed in accordance with the provisions of the Income-tax Act, 1961.

The deferred tax charge or credit (reflecting the tax effects of timing
differences between accounting income and taxable income for the
period) and the corresponding deferred tax liabilities or assets are
recognized using the tax rates that have been enacted or substantively
enacted by the balance sheet date. Deferred tax assets are recognized
only to the extent there is reasonable certainty that the assets can be
realized in future; however; where there is unabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are
recognized only if there is a virtual certainty of realization of such
assets. Deferred tax assets are reviewed at each balance sheet date and
written down or written up to reflect the amount that is
reasonably/virtually certain (as the case may be) to be realized.

12 Foreign currency transactions

Foreign currency transactions are recorded at the spot rates on the
date of the respective transactions. Exchange differences arising on
foreign exchange transactions settled during the year are recognized in
the statement of profit and loss of the year. Monetary assets and
liabilities denominated in foreign currencies as at the balance sheet
date are translated at the closing exchange rates on that date; the
resultant exchange differences are recognized in the statement of
profit and loss. Non-monetary assets such as investments in equity
shares, etc. are carried forward in the balance sheet at costs.

13 Operating lease

Lease rentals in respect of assets acquired on operating leases are
recognised in the statement of profit and loss on a straight line basis
over the lease term.

14 Earnings per share (EPS)

The Basic EPS is computed by dividing the net profit attributable to
the equity shareholders for the year by the weighted average number of
equity shares outstanding during the reporting year. Diluted EPS is
computed by dividing the net profit attributable to the equity
shareholders for the year by the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year, except
where the results would be anti-dilutive.

15 Provisions and contingent liabilities

The Company creates a provision where there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
or a present obligation that may, but probably will not require an
outflow of resources. When there is a possible obligation in respect of
which the likelihood of outflow of resources is remote, no provision or
disclosure is made. Contingent assets are not recognized in the
financial statements.

Mar 31, 2013

The accounting policies set out below have been applied consistently to
the periods presented in these financial statements.

1.1 Basis of preparation of financial statements

These financial statements have been prepared and presented on the
accrual basis of accounting and comply with the Accounting Standards
prescribed in the Companies (Accounting Standards) Rules, 2006 issued
by the Central Government, the relevant provisions of the Companies
Act, 1956 and other accounting principles generally accepted in India,
to the extent applicable.

1.2 Current/Non-current classification

The assets and liabilities are classified into Current or Non-current.

An asset is classified as current when it satisfies any of the
following criteria:

(a) it is expected to be realised in, or is intended for sale or
consumption in, the entity''s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realised within twelve months after the
balance sheet date; or

(d) it is cash or a cash equivalent unless it is restricted from being
exchanged or used to settle a liability for atleast twelve months after
the balance sheet date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the
following criteria:

(a) it is expected to be settled in, the entity''s normal operating
cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the balance
sheet date; or

(d) the Company does not have an unconditional right to defer
settlement of the liability for atleast twelve months after the
reporting date. Terms of a liability that could at the option of the
counterparty, result in its settlement by the issue of equity
instruments do not affect its classification.

All other liabilities are classified as non-current.

Operating cycle

Based on the nature of services and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 3 to 4
years for the purpose of current Â non-current classification of assets
and liabilities.

1.3 Use of estimates

The preparation of financial statements in conformity with Generally
Accepted Accounting Principles (GAAP) requires management to make
judgments, estimates and assumptions that affect the application of
accounting policies and reported amounts of assets, liabilities, income
and expenses and the disclosure of contingent liabilities on the date
of the financial statements. Actual results could differ from those
estimates. Estimates and underlying assumptions are reviewed on an
ongoing basis. Any revision to accounting estimates is recognised
prospectively in current and future periods.

Tangible fixed assets are carried at cost of acquisition or
construction less accumulated depreciation and/or accumulated
impairment loss, if any. The cost of an item of tangible fixed asset
comprises its purchase price, including import duties and other
non-refundable taxes or levies and any directly attributable cost of
bringing the asset to its working condition for its intended use; any
trade discounts and rebates are deducted in arriving at the purchase
price.

Subsequent expenditures related to an item of tangible fixed asset are
added to its book value only if they increase the future benefits from
the existing asset beyond its previously assessed standard of
performance.

Depreciation is provided on the written down value method. The rates of
depreciation prescribed in Schedule XIV to the Companies Act, 1956 are
considered as the minimum rates. If the management''s estimate of the
useful life of a fixed asset at the time of acquisition of the asset or
of the remaining useful life on a subsequent review is shorter than
that envisaged in the aforesaid schedule, depreciation is provided at a
higher rate based on the management''s estimate of the useful
life/remaining useful life. Depreciation is provided on a pro-rata
basis i.e. from the date on which asset is ready for use.

Plant and equipment and furniture and fixtures, costing individually Rs.
5,000 or less, are depreciated fully in the year of purchase.

A fixed asset is eliminated from the financial statements on disposal
or when no further benefit is expected from its use and disposal.

1.5 Impairment of assets

The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. The
recoverable amount is the greater of the net selling price and value in
use. In assessing value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor. If such recoverable amount of the asset or the recoverable
amount of the cash generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and
is recognized in the statement of profit and loss. If at the balance
sheet date there is an indication that a previously assessed impairment
loss no longer exists, the recoverable amount is reassessed and the
asset is reflected at the recoverable amount subject to a maximum of
depreciable historical cost.

1.6 Investments

Investments that are readily realisable and intended to be held for not
more than a year from the date of acquisition are classified as current
investments. All other investments are classified as long-term
investments. However, that part of long term investments which is
expected to be realized within 12 months after the reporting date is
also presented under ''current assets'' as "current portion of long-term
investments" in consonance with the currentÂnon-current classification
scheme of revised Schedule VI.

Long-term investments (including current portion thereof) are carried
at cost less any other-than-temporary diminution in value, determined
separately for each individual investment.

Any reductions in the carrying amount and any reversals of such
reductions are charged or credited to the Statement of Profit and Loss.

1.7 Inventories

Direct expenses like cost of land, site labour cost, material used for
project construction, project management consultancy, costs for moving
the plant and machinery to the site and general expenses incurred
specifically for the respective project like insurance, design and
technical assistance, borrowing costs and construction overheads are
taken as the cost of construction work-in-progress.

Material at site comprises of building material, components and stores
and spares.

Inventories are valued as lower of cost and net realizable value. Cost
is determined on the first in first out (''FIFO'') basis. Net realizable
value is the estimated selling price in the ordinary course of
business, less estimated costs of completion and estimated costs
necessary to make the sale.

1.8 Borrowing costs

Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are treated as direct cost a nd a re
conside r e d a s pa r t of cost of such a sset s. A qu a l i f y i n g
a ss e t is a n a sset t h at n e c e ssa r i ly r e q u i res a subst
a nt ia l period of time to get ready for its intended use or sale.
Capitalisation of borrowing costs is suspended in the period during
which the active development is delayed beyond reasonable time due to
other than temporary interruption. All other borrowing costs are
charged to the statement of profit and loss as incurred.

1.9 Employee benefits

(a) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering
the service are classified as short-term employee benefits. Benefits
such as salaries and wages, leave salary etc. and the expected cost of
ex-gratia are recognized in the period in which the employee renders
the related service.

(b) Post employment benefits

Defined contribution plans:

The Company makes specified monthly contributions towards employee
provident fund. The Company''s contribution paid/payable under the
schemes is recognized as an expense in the statement of profit and loss
during the period in which the employee renders the related service.

Defined benefit plan:

The Company''s gratuity benefit scheme is a defined benefit plan. The
Company''s net obligation in respect of the gratuity benefit scheme is
calculated by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior
periods; that benefit is discounted to determine its present value, and
the fair value of any plan assets is deducted.

The present value of the obligation under such defined benefit plan is
determined based on actuarial valuation using the Projected Unit Credit
Method, which recognizes each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.

T he obl igat ion is measu red at t he present value of the est i mated
futu re cash f lows. The discou nt rates used for determin i ng the
present value of the obligation under defined benefit plan, are based
on the market yields on Government securities as at the balance sheet
date.

When the calculation results in a benefit to the Company, the
recognized asset is limited to the net total of any unrecognized
actuarial losses and past service costs and the present value of any
future refunds from the plan or reductions in future contributions to
the plan.

Actuarial gains and losses are recognized immediately in the statement
of profit and loss.

1.10 Revenue recognition

Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.

Income from real estate sales is recognized on the transfer of all
significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant
uncertainty exists regarding the amount of consideration. However, if
at the time of transfer substantial acts are yet to be performed under
the contract, revenue is recognized on proportionate basis as the acts
are performed, i.e., on the percentage of completion basis.

Determination of revenues under the percentage of completion method
necessarily involves making estimates by the Company, some of which are
of a technical nature, concerning, where relevant, the percentages of
completion, costs to completion, the expected revenues from the
project/activity and the foreseeable losses to completion. The
estimates of cost are periodically reviewed by the management and the
effect of changes in estimates is recognised in the period such changes
are recognised. When the total project cost is estimated to exceed
total revenues from the project, the loss is recognised immediately.

Re venue from t rad i n g act iv it y, i n prop ert y as we l l as
Transfe r able De velopme nt R ig hts ( T DR), i s recog n ized when
sig n if ica nt risk and rewards of the property/TDR are transferred to
the buyer, as demonstrated by transfer of physical possession and
transfer of the title in the property/TDR.

Interest income is recognized on time proportion basis.

Dividend income is recognized when the right to receive dividend is
established.

1.11 Taxation

Income-tax expense comprises current income tax and deferred tax charge
or credit.

Current tax provision is made annually based on the tax liability
computed in accordance with the provisions of the Income- tax Act,
1961.

The deferred tax charge or credit (reflecting the tax effects of timing
differences between accounting income and taxable income for the
period) and the corresponding deferred tax liabilities or assets are
recognized using the tax rates that have been enacted or substantively
enacted by the balance sheet date. Deferred tax assets are recognized
only to the extent there is reasonable certainty that the assets can be
realized in future; however; where there is unabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are
recognized only if there is a virtual certainty of realization of such
assets. Deferred tax assets are reviewed at each balance sheet date and
written down or written up to reflect the amount that is
reasonably/virtually certain (as the case may be) to be realized.

1.12 Foreign currency transactions

Foreign currency transactions are recorded at the spot rates on the
date of the respective transactions. Exchange differences arising on
foreign exchange transactions settled during the year are recognized in
the statement of profit and loss of the year.

Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date are translated at the closing exchange rates on
that date; the resultant exchange differences are recognized in the
statement of profit and loss. Non- monetary asset such as investments
in equity shares, etc. are carried forward in the balance sheet at
costs.

1.13 Operating lease

Lease rentals in respect of assets acquired on operating leases are
recognised in the statement of profit and loss on a straight line basis
over the lease term.

1.14 Earnings per share (EPS)

The Basic EPS is computed by dividing the net profit attributable to
the equity shareholders for the year by the weighted average number of
equity shares outstanding during the reporting year. Diluted EPS is
computed by dividing the net profit attributable to the equity
shareholders for the year by the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year, except
where the results would be anti-dilutive.

1.15 Provisions and contingent liabilities

The Company creates a provision where there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
or a present obligation that may, but probably will not require an
outflow of resources. When there is a possible obligation in respect of
which the likelihood of outflow of resources is remote, no provision or
disclosure is made. Contingent assets are not recognised in the
financial statements.

Mar 31, 2012

1.1 Basis of preparation of financial statements

The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting and in
accordance with the provisions of the Companies Act, 1956 ('the
Act'), and the accounting principles generally accepted in India and
comply with the accounting standards prescribed in the Companies
(Accounting Standards) Rules, 2006 issued by the Central Government, in
consultation with the National Advisory Committee on Accounting
Standards, to the extent applicable.

The financial statements for the year ended 31 March 2011 had been
prepared as per the then applicable, pre-revised Schedule VI to the
Act. Consequent to the notification of revised Schedule VI under the
Act, the financial statements for the year ended 31 March 2012 are
prepared as per revised Schedule VI. Accordingly, the previous year
figures have also been reclassified to conform to this year's
classification. The adoption of revised Schedule VI for previous year
figures does not impact recognition and measurement principles followed
for preparation of financial statements.

1.2 Current/Non-current classification

The Revised Schedule VI to the Act requires assets and liabilities to
be classified as either Current or Non-current.

An asset is classified as current when it satisfies any of the
following criteria:

(a) it is expected to be realised in, or is intended for sale or
consumption in, the entity's normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is expected to be realised within twelve months after the
balance sheet date; or

(d) it is cash or a cash equivalent unless it is restricted from being
exchanged or used to settle a liability for atleast twelve months after
the balance sheet date.

All other assets are classified as non-current.

A liability is classified as current when it satisfies any of the
following criteria:

(a) it is expected to be settled in, the entity's normal operating
cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the balance
sheet date; or

(d) the Company does not have an unconditional right to defer
settlement of the liability for atleast twelve months after the balance
sheet date.

All other liabilities are classified as non-current.

Based on the nature of services and the time between the acquisition of
assets for processing and their realisation in cash and cash
equivalents, the Company has ascertained its operating cycle as 3 to 4
years for the purpose of current - non-current classification of assets
and liabilities.

1.3 Use of estimates

The preparation of financial statements in conformity with generally
accepted accounting principles in India requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements. Management believes that the
estimates made in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from those
estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods. Significant estimates used
by the management in the preparation of these financial statements
include computation of percentage completion for projects in progress,
project cost, revenue and saleable area estimates, estimate of the
economic useful lives of fixed assets.

Fixed assets are stated at cost less accumulated depreciation /
amortisation and impairment losses, if any. Cost comprises of purchase
price and any attributable cost such as duties, freight, borrowing
costs, erection and commissioning expenses incurred in bringing the
asset to its working condition for its intended use.

Depreciation on fixed assets except leasehold improvements is provided
on written down value method in the manner and rates prescribed in
Schedule XIV to the Act. Depreciation is charged on a pro-rata basis
for assets purchased/sold during the year.

Assets costing less than Rs. 5,000 are fully depreciated in the year of
acquisition.

Leasehold improvements are amortised over the primary period of lease.

Capital work-in-progress includes the cost of fixed assets that are not
ready to use at the balance sheet date and advances paid to acquire
fixed assets on or before the balance sheet date.

1.5 Impairment of assets

The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. The
recoverable amount is the greater of the net selling price and value in
use. In assessing value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor. If such recoverable amount of the asset or the recoverable
amount of the cash generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and
is recognized in the profit and loss account. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciable
historical cost.

1.6 Investments

Long-term investments are carried at cost. Provision for diminution is
made to recognise a decline, other than temporary in value of
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value, computed separately in respect of each category of investment.

1.7 Inventories

Direct expenses like cost of land, site labour cost, material used for
project construction, project management consultancy, costs for moving
the plant and machinery to the site and general expenses incurred
specifically for the respective project like insurance, design and
technical assistance, borrowing costs and construction overheads are
taken as the cost of construction work-in-progress.

Material at site comprises of building material, components and stores
and spares.

Inventories are valued as lower of cost and net realizable value. Cost
is determined on the first in first out ('FIFO') basis. Net
realizable value is the estimated selling price in the ordinary course
of business, less estimated costs of completion and estimated costs
necessary to make the sale.

1.8 Borrowing costs

Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are treated as direct cost and are
considered as part of cost of such assets. A qualifying asset is an
asset that necessarily requires a substantial period of time to get
ready for its intended use or sale. Capitalisation of borrowing costs
is suspended in the period during which the active development is
delayed beyond reasonable time due to other than temporary
interruption. All other borrowing costs are charged to the statement of
profit and loss as incurred.

1.9 Employee benefits

(a) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering
the service are classified as short-term employee benefits. Benefits
such as salaries and wages, leave salary etc. and the expected cost of
ex-gratia are recognized in the period in which the employee renders
the related service.

(b) Post employment benefits Defined contribution plans:

The Company makes specified monthly contributions towards employee
provident fund. The Company's contribution paid/payable under the
schemes is recognized as an expense in the statement of profit and loss
during the period in which the employee renders the related service.

Defined benefit plan:

The Company's gratuity benefit scheme is a defined benefit plan. The
Company's net obligation in respect of the gratuity benefit scheme is
calculated by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior
periods; that benefit is discounted to determine its present value, and
the fair value of any plan assets is deducted.

The present value of the obligation under such defined benefit plan is
determined based on actuarial valuation using the Projected Unit Credit
Method, which recognizes each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.

The obligation is measured at the present value of the estimated future
cash flows. The discount rates used for determining the present value
of the obligation under defined benefit plan, are based on the market
yields on Government securities as at the balance sheet date.

When the calculation results in a benefit to the Company, the
recognized asset is limited to the net total of any unrecognized
actuarial losses and past service costs and the present value of any
future refunds from the plan or reductions in future contributions to
the plan.

Actuarial gains and losses are recognized immediately in the statement
of profit and loss.

1.10 Revenue recognition

Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.

Income from real estate sales is recognized on the transfer of all
significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant
uncertainty exists regarding the amount of consideration. However, if
at the time of transfer substantial acts are yet to be performed under
the contract, revenue is recognized on proportionate basis as the acts
are performed, i.e., on the percentage of completion basis.

Determination of revenues under the percentage of completion method
necessarily involves making estimates by the Company, some of which are
of a technical nature, concerning, where relevant, the percentages of
completion, costs to completion, the expected revenues from the
project/activity and the foreseeable losses to completion. The
estimates of cost are periodically reviewed by the management and the
effect of changes in estimates is recognised in the period such changes
are recognised. When the total project cost is estimated to exceed
total revenues from the project, the loss is recognised immediately.

Revenue from trading activity, in property as well as Transferable
Development Rights (TDR), is recognized when significant risk and
rewards of the property/TDR are transferred to the buyer, as
demonstrated by transfer of physical possession and transfer of the
title in the property/TDR.

Interest income is recognized on time proportion basis.

Dividend income is recognized when the right to receive dividend is
established.

1.11 Taxation

Income tax expense comprises current income tax and deferred tax charge
or credit.

Current tax provision is made annually based on the tax liability
computed in accordance with the provisions of the Income Tax Act, 1961.

The deferred tax charge or credit (reflecting the tax effects of timing
differences between accounting income and taxable income for the
period) and the corresponding deferred tax liabilities or assets are
recognized using the tax rates that have been enacted or substantively
enacted by the balance sheet date. Deferred tax assets are recognized
only to the extent there is reasonable certainty that the assets can be
realized in future; however; where there is unabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are
recognized only if there is a virtual certainty of realization of such
assets. Deferred tax assets are reviewed at each balance sheet date and
written down or written up to reflect the amount that is
reasonably/virtually certain (as the case may be) to be realized.

1.12 Foreign currency transactions

Foreign currency transactions are recorded at the spot rates on the
date of the respective transactions. Exchange differences arising on
foreign exchange transactions settled during the year are recognized in
the statement of profit and loss of the year.

Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date are translated at the closing exchange rates on
that date; the resultant exchange differences are recognized in the
statement of profit and loss. Non-monetary asset such as investments
in equity shares, etc. are carried forward in the balance sheet at
costs.

1.13 Operating lease

Lease rentals in respect of assets acquired on operating leases are
recognised in the statement of profit and loss on a straight line basis
over the lease term.

1.14 Earnings per share (EPS)

The Basic EPS is computed by dividing the net profit attributable to
the equity shareholders for the year by the weighted average number of
equity shares outstanding during the reporting year. Diluted EPS is
computed by dividing the net profit attributable to the equity
shareholders for the year by the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year, except
where the results would be anti-dilutive.

1.15 Provisions and contingent liabilities

The Company creates a provision where there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
or a present obligation that may, but probably will not require an
outflow of resources. When there is a possible obligation in respect of
which the likelihood of outflow of resources is remote, no provision or
disclosure is made. Contingent assets are not recognised in the
financial statements.

Mar 31, 2011

1.1 Basis of preparation of financial statements

The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting and in
accordance with the provisions of the Companies Act, 1956 (Ãthe Act'),
and the accounting principles generally accepted in India and comply
with the accounting standards prescribed in the Companies (Accounting
Standards) Rules, 2006 issued by the Central Government, in
consultation with the National Advisory Committee on Accounting
Standards, to the extent applicable.

2.2 Use of estimates

The preparation of financial statements in conformity with generally
accepted accounting principles in India requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements. Management believes that the
estimates made in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from those
estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods. Significant estimates
used by the management in the preparation of these financial statements
include computation of percentage completion for projects in progress,
project cost, revenue and saleable area estimates, estimate of the
economic useful lives of fixed assets.

2.3 Fixed assets and depreciation/amortisation

Fixed assets are stated at cost less accumulated depreciation /
amortisation and impairment losses, if any. Cost comprises of purchase
price and any attributable cost such as duties, freight, borrowing
costs, erection and commissioning expenses incurred in bringing the
asset to its working condition for its intended use.

Depreciation on fixed assets except leasehold improvements is provided
on written down value method in the manner and rates prescribed in
Schedule XIV to the Act. Depreciation is charged on a pro-rata basis
for assets purchased / sold during the year.

Assets costing less than Rs. 5,000 are fully depreciated in the year of
acquisition.

Leasehold improvements are amortised over the primary period of lease.

Capital work-in-progress includes the cost of fixed assets that are not
ready to use at the balance sheet date and advances paid to acquire
fixed assets on or before the balance sheet date.

2.4 Impairment of assets

The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. The
recoverable amount is the greater of the net selling price and value in
use. In assessing value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor. If such recoverable amount of the asset or the recoverable
amount of the cash generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and
is recognised in the profit and loss account. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longer exists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciable
historical cost.

2.5 Investments

Long-term investments are carried at cost. Provision for diminution is
made to recognise a decline, other than temporary in value of
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value, computed separately in respect of each category of investment.

2.6 Inventories

Direct expenses like cost of land, site labour cost, material used for
project construction, project management consultancy, costs for moving
the plant and machinery to the site and general expenses incurred
specifically for the respective project like insurance, design and
technical assistance, borrowing costs and construction overheads are
taken as the cost of construction work-in-progress.

Material at site comprises of building material, components and stores
and spares.

Inventories are valued as lower of cost and net realizable value. Cost
is determined on the first in first out (ÃFIFO') basis. Net realizable
value is the estimated selling price in the ordinary course of
business, less estimated costs of completion and estimated costs
necessary to make the sale.

2.7 Borrowing costs

Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are treated as direct cost and are
considered as part of cost of such assets. A qualifying asset is an
asset that necessarily requires a substantial period of time to get
ready for its intended use or sale. Capitalisation of borrowing costs
is suspended in the period during which the active development is
delayed beyond reasonable time due to other than temporary
interruption. All other borrowing costs are charged to the profit and
loss account as incurred.

2.8 Employee benefits

(a) Short-term employee benefits

All employee benefits payable wholly within twelve months of rendering
the service are classified as short-term employee benefits. Benefits
such as salaries and wages, leave salary etc. and the expected cost of
ex-gratia are recognised in the period in which the employee renders
the related service.

(b) Post employment benefits

Defined contribution plans:

The Company makes specified monthly contributions towards employee
provident fund. The Company's contribution paid / payable under the
schemes is recognised as an expense in the profit and loss account
during the period in which the employee renders the related service.

Defined benefit plan:

The Company's gratuity benefit scheme is a defined benefit plan. The
Company's net obligation in respect of the gratuity benefit scheme is
calculated by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior
periods; that benefit is discounted to determine its present value, and
the fair value of any plan assets is deducted.

The present value of the obligation under such defined benefit plan is
determined based on actuarial valuation using the Projected Unit Credit
Method, which recognises each period of service as giving rise to
additional unit of employee benefit entitlement and measures each unit
separately to build up the final obligation.

The obligation is measured at the present value of the estimated future
cash flows. The discount rates used for determining the present value
of the obligation under defined benefit plan, are based on the market
yields on Government securities as at the balance sheet date.

When the calculation results in a benefit to the Company, the
recognised asset is limited to the net total of any unrecognised
actuarial losses and past service costs and the present value of any
future refunds from the plan or reductions in future contributions to
the plan.

Actuarial gains and losses are recognised immediately in the profit and
loss account.

2.9 Revenue recognition

Revenue is recognised to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.

Income from real estate sales is recognised on the transfer of all
significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant
uncertainty exists regarding the amount of consideration. However, if
at the time of transfer substantial acts are yet to be performed under
the contract, revenue is recognised on proportionate basis as the acts
are performed, i.e., on the percentage of completion basis.

Determination of revenues under the percentage of completion method
necessarily involves making estimates by the Company, some of which are
of a technical nature, concerning, where relevant, the percentages of
completion, costs to completion, the expected revenues from the
project/activity and the foreseeable losses to completion. The
estimates of cost are periodically reviewed by the Management and the
effect of changes in estimates is recognised in the period such changes
are recognised. When the total project cost is estimated to exceed
total revenues from the project, the loss is recognised immediately.

Revenue from trading activity, property as well as Transferable
Development Rights (TDR), is recognised when significant risk and
rewards of the property/TDR are transferred to the buyer, as
demonstrated by transfer of physical possession and transfer of the
title in the property/TDR.

Interest income is recognised on time proportion basis.

Dividend income is recognised when the right to receive dividend is
established.

2.10 Taxation

Income tax expense comprises current income tax and deferred tax charge
or credit.

Current tax provision is made annually based on the tax liability
computed in accordance with the provisions of the Income Tax Act, 1961.

The deferred tax charge or credit (reflecting the tax effects of timing
differences between accounting income and taxable income for the
period) and the corresponding deferred tax liabilities or assets are
recognised using the tax rates that have been enacted or substantively
enacted by the balance sheet date. Deferred tax assets are recognised
only to the extent there is reasonable certainty that the assets can be
realized in future; however; where there is unabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are
recognised only if there is a virtual certainty of realization of such
assets. Deferred tax assets are reviewed at each balance sheet date and
written down or written up to reflect the amount that is
reasonably/virtually certain (as the case may be) to be realised.

2.11 Foreign currency transactions

Foreign currency transactions are recorded at the spot rates on the
date of the respective transactions. Exchange differences arising on
foreign exchange transactions settled during the year are recognised in
the profit and loss account of the year.

Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date are translated at the closing exchange rates on
that date; the resultant exchange differences are recognised in the
profit and loss account. Non-monetary asset such as investments in
equity shares, etc. are carried forward in the balance sheet at costs.

2.12 Operating lease

Lease rentals in respect of assets acquired on operating leases are
recognised in the profit and loss account on a straight line basis over
the lease term.

2.13 Earnings per share (EPS)

The Basic EPS is computed by dividing the net profit attributable to
the equity shareholders for the year by the weighted average number of
equity shares outstanding during the reporting year. Diluted EPS is
computed by dividing the net profit attributable to the equity
shareholders for the year by the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year, except
where the results would be anti-dilutive.

2.14 Provisions and contingent liabilities

The Company creates a provision where there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
or a present obligation that may, but probably will not require an
outflow of resources. When there is a possible obligation in respect of
which the likelihood of outflow of resources is remote, no provision or
disclosure is made. Contingent assets are not recognised in the
financial statements.

Mar 31, 2010

1.1 Basis of preparation of financial statements

The financial statements are prepared and presented under the
historical cost convention, on the accrual basis of accounting and in
accordance with the provisions of the Companies Act, 1956 (the Act),
and the accounting principles generally accepted in India and comply
with the accounting standards prescribed in the Companies (Accounting
Standards) Rules, 2006 issued by the Central Government, in
consultation with the National Advisory Committee on Accounting
Standards, to the extent applicable.

1.2 Use of estimates

The preparation of financial statements in conformity with generally
accepted accounting principles in India requires the management to make
estimates and assumptions that affect the reported amounts of assets
and liabilities and the disclosure of contingent liabilities on the
date of the financial statements. Management believes that the
estimates made in the preparation of the financial statements are
prudent and reasonable. Actual results could differ from those
estimates. Any revision to accounting estimates is recognised
prospectively in current and future periods. Significant estimates
used by the management in the preparation of these financial statements
include computation of percentage completion for projects in progress,
project cost, revenue and saleable area estimates, estimate of the
economic useful lives of fixed assets, provisions for bad and doubtful
debts.

1.3 Fixed assets and depreciation/amortisation

Fixed assetsare stated at cost less accumulated
depreciation/amortization and impairment losses, if any. Cost com
prises of purchase price and any attributable cost such as duties,
freight, borrowing costs, erection and commissioning expenses incurred
in bringing the asset to its working condition for its intended use.

Depreciation on fixed assets except leasehold improvements is provided
on written down value method in the manner and rates prescribed in
Schedule XIV to the Act. Depreciation is charged on a pro-rata basis
for assets purchased/sold during the year.

Assets costing less than Rs 5,000 are fully depreciated in the year of
acquisition.

Leasehold improvements are amortised over the primary period of lease.

Capital work-in-progress includes the cost of fixed assets that are not
ready to use at the balance sheet date and advances paid to acquire
fixed assets on or before the balance sheet date.

1.4 Impairment of assets

The Company assesses at each balance sheet date whether there is any
indication that an asset may be impaired. If any such indication
exists, the Company estimates the recoverable amount of the asset. The
recoverable amount is the greater of the net selling price and value in
use. In assessing value in use, the estimated future cash flows are
discounted to their present value based on an appropriate discount
factor. If such recoverable amount of the asset or the recoverable
amount of the cash generating unit to which the asset belongs is less
than its carrying amount, the carrying amount is reduced to its
recoverable amount. The reduction is treated as an impairment loss and
is recognized in the profit and loss account. If at the balance sheet
date there is an indication that a previously assessed impairment loss
no longerexists, the recoverable amount is reassessed and the asset is
reflected at the recoverable amount subject to a maximum of depreciable
historical cost.

1.5 Investments

Long term investments are carried at cost. Provision for diminution is
made to recognise a decline, other than temporary in value of
investments and is determined separately for each individual
investment. Current investments are carried at lower of cost and fair
value, computed separately in respect of each category of investment.

1.6 Inventories

Direct expenses like cost of land, site labour cost, material used for
project construction, project management consultancy, costs for moving
the plant and machinery to the site and general expenses incurred
specifically for the respective project like insurance, design and
technical assistance, borrowing costs and construction overheads are
taken as the cost of construction work-in-progress.

Material at site comprises of building material, components and stores
and spares.

Inventories are valued as lower of cost and net realizable value. Cost
is determined on the first in first out (FIFO) basis. Net realizable
value is the estimated selling price in the ordinary course of
business, less estimated costs of completion and estimated costs
necessary to make the sale.

1.7 Borrowing costs

Borrowing costs that are attributable to the acquisition, construction
or production of qualifying assets are treated as direct cost and are
considered as part of cost of such assets. A qualifying asset is an
asset that necessarily requires a substantial period of time to get
ready for its intended use or sale. Capitalisation of borrowing costs
is suspended in the period during which the active development is
delayed beyond reasonable time due to, other than temporary
interruption. All other borrowing costs are charged to the profit and
loss account as incurred.

1.8 Employee benefits

(a) Short term employee benefits

All employee benefits payable wholly within twelve months of rendering
the service are classified as short-term employee benefits. Benefits
such as salaries and wages, leave salary etc. and the expected cost of
ex-gratia are recognized in the period in which the employee renders
the related service.

(b) Post employment benefits

Defined contribution plans:

The Company makes specified monthly contributions towards employee
provident fund. The Companys contribution paid / payable under the
schemes is recognized as an expense in the profit and loss account
during the period in which the employee renders the related service.

Defined benefit plan:

The Companys gratuity benefit scheme is a defined benefit plan. The
Companys net obligation in respect of the gratuity benefit scheme is
calculated by estimating the amount of future benefit that employees
have earned in return for their service in the current and prior
periods; that benefit is discounted to determine its present value, and
the fair value of any plan assets is deducted. The present value of the
obligation under such defined benefit plan is determined based on
actuarial valuation using the Projected Unit Credit Method, which
recognizes each period of service as giving rise to additional unit of
employee benefit entitlement and measures each unit separately to build
up the final obligation. The obligation is measured at the present
value of the estimated future cash flows. The discount rates used for
determining the present value of the obligation under defined benefit
plan, are based on the market yields on Government securities as at the
balance sheet date.

When the calculation results in a benefit to the Company, the
recognized asset is limited to the net total of any unrecognized
actuarial losses and past service costs and the present value of any
future refunds from the plan or reductions in future contributions to
the plan.

Actuarial gains and losses are recognized immediately in the profit and
loss account.

1.9 Revenue recognition

Revenue is recognized to the extent that it is probable that the
economic benefits will flow to the Company and the revenue can be
reliably measured.

Income from real estate sales is recognized on the transfer of all
significant risks and rewards of ownership to the buyers and it is not
unreasonable to expect ultimate collection and no significant
uncertainty exists regarding the amount of consideration. However if,
at the time of transfer substantial acts are yet to be performed under
the contract, revenue is recognized on proportionate basis as the acts
are performed, i.e. on the percentage of completion basis.

Determination of revenues under the percentage of completion method
necessarily involves making estimates by the Company, some of which are
of a technical nature, concerning, where relevant, the percentages of
completion, costs to completion, the expected revenues from the
project/activity and the foreseeable losses to completion. The
estimates of cost are periodically reviewed by the Management and the
effect of changes in estimates is recognised in the period such changes
are recognised. When the total project cost is estimated to exceed
total revenues from the project, the loss is recognised immediately.

Revenue from trading activity, property as well as Transferable
Development Rights (TDR), is recognized when significant risk and
rewards of the property/TDR are transferred to the buyer, as
demonstrated by transfer of physical possession and transfer of the
title in the property/TDR.

Interest income is recognized on time proportion basis.

Dividend income is recognized when the right to receive dividend is
established.

1.10 Taxation

Income tax expense comprises current income tax and deferred tax charge
or credit.

Current tax provision is made annually based on the tax liability
computed in accordance with the provisions of the Income Tax Act, 1961.

The deferred tax charge or credit (reflecting the tax effects of timing
differences between accounting income and taxable income for the
period) and the corresponding deferred tax liabilities or assets are
recognized using the tax rates that have been enacted or substantively
enacted by the balance sheet date. Deferred tax assets are recognized
only to the extent there is reasonable certainty that the assets can be
realized in future; however; where there is unabsorbed depreciation or
carried forward loss under taxation laws, deferred tax assets are
recognized only if there is a virtual certainty of realization of such
assets. Deferred tax assets are reviewed at each balance sheet date and
written down or written up to reflect the amount that is
reasonably/virtually certain (as the case may be) to be realized.

1.11 Foreign currency transactions

Foreign currency transactions are recorded at the spot rates on the
date of the respective transactions. Exchange differences arising on
foreign exchange transactions settled during the year are recognized in
the profit and loss account of the year.

Monetary assets and liabilities denominated in foreign currencies as at
the balance sheet date are translated at the closing exchange rates on
that date; the resultant exchange differences are recognized in the
profit and loss account. Non-monetary asset such as investments in
equity shares, etc. are carried forward in the balance sheet at costs.

1.12 Operating lease

Lease rentals in respect of assets acquired on operating leases are
recognised in the profit and loss account on a straight line basis over
the lease term.

1.13 Earnings per share (EPS)

The Basic EPS is computed by dividing the net profit attributable to
the equity shareholders for the year by the weighted average number of
equity shares outstanding during the reporting year. Diluted EPS is
computed by dividing the net profit attributable to the equity
shareholders for the year by the weighted average number of equity and
dilutive equity equivalent shares outstanding during the year, except
where the results would be anti-dilutive.

1.14 Provisions and contingent liabilities

The Company creates a provision where there is present obligation as a
result of a past event that probably requires an outflow of resources
and a reliable estimate can be made of the amount of the obligation. A
disclosure for a contingent liability is made when there is a possible
or a present obligation that may, but probably will not require an
outflow of resources. When there is a possible obligation in respect of
which the likelihood of outflow of resources is remote, no provision or
disclosure is made. Contingent assets are not recognised in the
financial statements.